Commercial Vehicle Group reported financial results for the fourth quarter and fiscal year ended December 31, 2015.
Article continues below
Q4 revenues were $184.7 million compared to $211.9 million in the prior-year period, a decrease of 12.8 percent, primarily resulting from a decline in fourth quarter heavy-duty truck production in North America, decreased sales into the global construction and agriculture markets, and foreign currency translation due to the relative strength of the U.S. dollar.
Foreign currency translation negatively impacted fourth quarter revenues by $3.3 million, or 1.5 percent.
Operating income in the fourth quarter was $5.3 million compared to operating income of $9.5 million in the prior-year period. The decrease in operating income period-over-period was a result of decreased sales.
The fourth quarter 2015 results included restructuring costs of $0.8 million and the fourth quarter of 2014 results included $0.7 million of restructuring costs related to the closure of the Tigard facility.
Net loss was $2.3 million in the fourth quarter, or $0.08 per diluted share, compared to net income of $4.2 million, or $0.15 per diluted share, in the prior-year period.
Net loss in the fourth quarter reflects an after-tax charge of $0.4 million associated with the redemption of $15 million of the Company's senior secured notes, and an income tax provision of $1.7 million compared to an income tax benefit of $0.1 million in the prior-year period.
The income tax provision in the fourth quarter resulted primarily from pre-tax losses in certain foreign subsidiaries with deferred tax asset valuation allowances; conversely, the income tax benefit in the prior year period resulted primarily from a reduction in deferred tax asset valuation allowances in certain foreign subsidiaries.
Diluted shares outstanding were 29.7 million in the fourth quarter compared to 29.1 million for the prior-year period.
Fiscal year 2015
Fiscal year 2015 revenues were $825.3 million compared to $839.7 million in the prior year, a decrease of 1.7 percent, resulting from decreased sales into the global construction and agriculture markets and the negative impact of foreign currency translation, offset by an increase in medium- and heavy-duty truck (MD/HD Truck) production in North America.
Foreign currency translation negatively impacted fiscal year 2015 revenues by $18.3 million, or 2.2 percent.
Operating income for the full year was $38.0 million compared to operating income of $33.7 million in the prior year, an increase of $4.3 million. The increase in operating income year-over-year resulted from gross profit margin improvement and reduced selling, general & administrative expenses.
Results in 2015 included restructuring charges of $2.3 million (inclusive of $1.5 million of Tigard restructuring costs) and 2014 included restructuring charges of $2.1 million related to the closure of the Tigard facility and sale of the Norwalk facility.
Net income was $7.1 million for fiscal year 2015, or $0.24 per diluted share, compared to a net income of $7.6 million, or $0.26 per diluted share, in fiscal year 2014.
Net income in fiscal year 2015 reflects an income tax provision of $9.8 million compared to an income tax provision of $5.1 million in the prior year.
The income tax provision in 2015 was adversely affected by pre-tax losses in certain foreign subsidiaries with deferred tax asset valuation allowances; conversely, the income tax provision in the prior year period benefited from a reduction in deferred tax asset valuation allowances in certain foreign subsidiaries.
Diluted shares outstanding were 29.4 million for the fiscal year ending December 31, 2015 compared to 29.1 million for the fiscal year ending December 31, 2014. ■